MI HB5256

Amends Michigan's Occupational Code to clarify that "collection agency" includes persons directly engaged in collecting claims that have been purchased, assigned, or transferred to them, with clarifying language added throughout the definition.

Requires licensees and collection agencies to provide written notice to debtors at least 5 days before first contact regarding purchased or assigned claims, including the outstanding dollar amount, collector name, original creditor name, name of assignor/transferor, and date and amount of last payment made.

Prohibits collection agencies from contacting debtors who provide documentation of economic abuse, including personal protective orders, domestic violence or elder abuse police reports, Federal Trade Commission identity theft reports, or professional reports from licensed social workers or mental health professionals documenting debts incurred through coercion.

Makes technical corrections to existing statutory language, changing "shall" to "continues" in the definition of creditor or principal.

Bill's effectiveness is contingent upon enactment of HB 5257 of the 101st Legislature.